Mercantile Law Mcq Answers

MERCANTILE

1. P rode a Sentinel Liner bus going to Baguio from Manila. At a stop-over in Tarlac, the bus driver, the conductor, and the passengers disembared for lunch. P decided, ho!ever, to remain in the bus, the door of !hich !as not loced. At this point, ", a vendor, sneaed into the bus and o#ered P some refreshments. $hen P rudel% declined, " attaced him, resulting in P su#ering from bruises and contusions. contusions. &oes he have cause to sue Sentinel Liner'  A.Yes,  A.Yes, since the the carrier’s crew did nothing to protect protect a passenger who remained in the bus during the stop-over.

B. (o, since the carrier)s cre! could not have foreseen the attac. *. +es, since the bus is liable for an%thing that goes !rong in the course of a trip. &. (o, since the attac on P too place !hen the bus !as at a stop-over. . A cargo ship of  Shipping, *o. ran aground o# the coast of *ebu during a storm and lost all its cargo amounting to Php/ Million. The ship itself su#ered damages estimated at Php0/ Million.  The cargo cargo o!ners led a suit against against  Shipping Shipping but it invoed invoed the doctrine doctrine of limited liabilit% liabilit% since its vessel su#ered an Php0/ Million damage, more than the collective value of all lost cargo. 2s  Shipping correct' A. +es, since under that doctrine, the value of the lost cargo and the damage to the ship can be set-o#. B. (o, since each cargo o!ner has a separate and individual claim for damages. *. +es, since the e3tent of the ship)s damage !as greater than that of the value of the lost cargo. D. No, since X Shipping neither incurred a total loss nor abandoned its ship.

4. A !rites a promissor% note in favor of his creditor, B. 2t sa%s5 6Sub7ect to m% option, 2 promise to pa% B Php1 Million or his order or give Php1 Million !orth of cement or to authori8e him to sell m% house !orth Php1 Million. Signed, A.9 2s the note negotiable'  A. No, because the exercise o the the option to pa! lies lies with A, the ma"er and debtor. debtor.

B. (o, because it authori8es the sale of collateral securities securities in case the note is not paid at maturit%. *. +es, because the note is reall% pa%able to B or his order, the other provisions being merel% optional. &. +es, because an election to re:uire something to be done in lieu of pa%ment of mone% does not a#ect negotiabilit%. ;. AB* *orp. increased its capital stocs from Php1/ Million to Php1 Million and, in the process, issued 1,/// ne! shares divided into *ommon Shares 6B9 and *ommon Shares 6*.9 T, a stocholder o!ning // shares, insists on bu%ing the ne!l% issued shares through a right of preemption. The compan% claims, ho!ever, that its B%-la!s den% T an% right of pre-emption. 2s the corporation correct'  A.No,since the the #!-$aws cannot den! den! a shareholder his right o pre-emption. pre-emption.

B. +es, but the denial of his pre-emptive right e3tends onl% to // shares. *. +es, since the denial of the right under the B%-la!s is binding on T. &. (o, since pre-emptive rights are governed b% the articles of incorporation. . M maes a promissor% note that states5 62, M, promise to pa% Php,///.// to B or bearer. Signed, M.9 M negotiated negotiated the note b% deliver% to B, B to (, and ( to